A massive contraction in food prices dragged India's annual rate of inflation based on wholesale prices to record low levels of 0.90 per cent in June, official data showed on Friday.

According to data from the Ministry of Commerce and Industry, the wholesale price index (WPI), with the revised base year of 2011-12, decelerated further in June 2017 to 0.90 per cent from 2.17 per cent in May as food prices eased.

India’s annual retail inflation eased to 1.54% in June to its slowest pace in more than five years, building pressure on the central bank to cut interest rates when it meets for a policy review on 2 August.